Nigerian news outlets are reporting a strong response by consumer association the National Association of Telecoms Subscribers (NATCOMS) to the latest government attempt by the government to tax telecoms.
The association has apparently said it will write to the country’s National Assembly over the Federal Government’s renewed push to impose a 5% excise duty on telecommunications services.
Although the group plans to meet this week to finalise its response, the actual tax seems to have been held up for now. In fact the legal battle against the excise duty is ongoing at the Lagos Division of the Federal High Court, where the case has been adjourned until 13 March next year.
However, the association is apparently trying to ensure that the government waits on the court’s judgment before taking any further steps to implement a tax.
As NATCOMS points out, telecom services are already subjected to over 40 different taxes and adding to them will increase the burden on subscribers.
The 5% excise duty is said to be part of a broader tax reform initiative that, if passed, would apply to telecom services, including postpaid and prepaid services.
The proposed tax has faced strong opposition since it was first suggested in 2022. In late 2022 we reported that Nigeria had decided to hold off on plans to impose the 5% tax on telecommunications services. This was confirmed in early 2023.
However, the government has apparently revived the plan as part of efforts to boost revenue amid the country’s ongoing economic challenges.
